Tuesday 29th of December 2009
Individual voluntary arrangement (IVA) questions could increasingly be on the lips of consumers after new research reveals that for every pound saved during the third quarter of this year, 32 pence was borrowed.
This marks an all-time high for 2009, Unbiased.co.uk claims. In order to start clearing their unsecured debt such as credit cards and personal loans, individuals may research their repayment options, including IVAs.
Debt could be a growing problem for many households, as during the second quarter of the year 27 pence was borrowed for every pound saved. With more credit being taken on, interest repayments may be rising for debt.
An IVA can, however, freeze the interest rates on unsecured debt and merge different credit sources into one monthly, more manageable, repayment.
With more controllable repayments, Britons may no longer need to rely on further credit to see them through.
"After the dramatic retreat from savings in favour of paying off personal debt in the first half of 2008, consumers are now slipping back into old habits, by borrowing around a third of what they save," states chief executive of Unbiased.co.uk Karen Barrett.
By Kim Parsons
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